Life Changes: Permitted Election Changes Under Section 125 and HIPAA Special Enrollment Events

When an employee elects benefits upon hire or the start of a new plan year, those elections typically cannot be changed until the next plan year. However, Internal Revenue Code Section 125 and HIPAA Special Enrollment rules allow employees to make mid-year benefit changes when certain life events occur. Employers must consider multiple factors when an employee requests a mid-year change to their benefit elections, including whether the change is permitted or required under certain laws, and whether the terms of their Section 125 cafeteria plan and the underlying benefit plan documents allow such a change. Additionally, employers must review the facts and circumstances of the request, the type of event, the timing of the request, and when a mid-year change can take effect.

During this webinar, we will dive into the specific events in the regulations that allow employees to make a mid-year benefit election change, and whether those changes are required or dependent on the terms of the employer’s plan. We will also flag key administrative and procedural issues that often arise when handling employee requests.

Presenters: Erin Freiberg and Erica Honig